The trade war between the US and China has a significant impact on the international business of smartphone maker Huawei. According to internal forecasts, the company expects 40 to 60 percent less remote smartphones outside of China. The Honor 20 could be retired early.
In a recent report from Bloomberg The business magazine cites several unnamed Huawei employees who are supposed to be familiar with the company's internal forecasts.
40 million to 60 million fewer smartphones
According to Huawei expects due to the trade war between the US and China with 40 percent to 60 percent lower sales in international business than last year. Nearly half of Huawei's total of 206 million phones sold last year were destined for countries outside of China. According to Huawei expects 40 million to 60 million fewer smartphones for the current year.
Own operating system as an alternative
After a 90-day transitional period, Huawei will no longer have access to United States technologies as of mid-August due to measures taken by US President Trump, including particularly vulnerable Google's Android, as well as ARM's system-on-a-chip HiSilicon and other purchased technologies and services. For example, Huawei is no longer allowed to pre-install Facebook and WhatsApp, but for users, the apps are still available on the Google Play Store.
As of mid-August, Huawei's smartphones will no longer receive Android updates, and Huawei will no longer be able to launch new devices with the Google-provided Android with Google Services. Only the detour via the Android Open Source Project (AOSP) would be possible, Huawei could also install their own App Store here. According to rumors, Huawei intends to use its own operating system HongMeng OS as an alternative in China from October onwards, which will be used as an Ark OS outside China from next year.
Honor 20 is bought cautiously
Huawei's next major European launch is the Honor 20, which should be discontinued after a short time, unless the sales figures develop as predicted. That it should not be particularly well ordered for the new smartphone, loud Bloomberg the behavior of two major French mobile operators who are not interested in the Honor 20 Apparently, the buyers of mobile operators are currently cautious when it comes to new devices from Huawei.
Focus on the Chinese market
To offset the expected decline in sales in Europe, Huawei is planning new sales strategies and aggressive marketing for the domestic market in China. These measures should lead to Huawei's growth in China by up to 45 percent, which could account for more than half of its domestic market.